tax on limited liability partnership
Post on 19-Oct-2014
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DESCRIPTION
The Limited Liability Partnership (LLP) in Malaysia are taxes similar as Limited Liability. However, the LLP are not required to be audited. Therefore, the profit and loss and balance sheet are base on management account. This will be more suitable business vehicle for Small and Medium Enterprise, which the set up of the business are simple, saving of cost and shield form unexpected business liability.TRANSCRIPT
TAX ON LIMITED LIABILITY PARTNERSHIP
Loh Boon How
Chartered Accountant
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B.H. Loh &
Associates
WHO ARE THE TAX RESIDENCE?
The LLP who is residence in Malaysia based on the management and control of business or affairs exercised by its partner,
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B.H. Loh &
AssociatesWHO IS RESPONSIBLE OF TAX AFFAIR?
The manager, The directors, The Company Secretary, and The compliance officer if he /she is one of the partners,
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B.H. Loh &
AssociatesWHAT ARE THE RESPONSIBILITY OF COMPLIANCE OFFICER?
Keep complete accounting records, Complete and submit the income tax return Form PT, Prepare and submission of tax estimation CP 204, Prepare and submission of tax revised estimation CP
204A, Make an installment payment and final tax payment, Inform an IRB on the changes of accounting periods.
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B.H. Loh &
AssociatesHOW TO CONTRIBUTE THE CHARGEABLE INCOME?
Statutory income
Business income XX
Less : Losses b/f (XX)
XX
Other statutory income
Add : Interest and discount income XX
Rent, royalty and premium XX
Other income XX XX
Less : Aggregate income XXX
Current year loss (XX)
Approved donation (XX)
Total income YYY
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B.H. Loh &
AssociatesHOW TO CONTRIBUTE THE CHARGEABLE INCOME?
Total income XX
Add : Statutory income from dividend YY
Chargeable income ZZ
Add : Unilateral relief AA
Bilateral relief BB
Dividend set off CC
ABC
ABCD
Tax payable @ 20% / 25% XYZ
Less : Tax installment of estimation / revised estimation WXY
Tax payable / repayable VWX
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B.H. Loh &
AssociatesWHAT ARE THE DEDUCTIBILITY EXPENSES?
The tax deductible of partner remunerations, perquisites and benefits in kind if the partnership agreement has been provided of partner remunerations.
The tax deductible of the incorporation expenses if the capital less that RM2.5 Million.
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WHAT IS THE TAX RATE APPLIED?
If the total capital less that 2.5 Million,a) The first RM500,000 of chargeable income – 20% b) The balance above RM500,000 of chargeable income – i) 25% in YA2014 and YA 2015 ii) 24% in YA2016
If the total capital more that 2.5 million the tax rate will be –
i) 25% in YA2014 and YA 2015 ii) 24% in YA2016
B.H. Loh &
Associates
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B.H. Loh &
Associates
WHAT ARE EXEMPTION FROM LLP TAX?
Any profit paid, credited or distributed to a partner by a LLP will be exempt from tax.
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B.H. Loh &
Associates
HOW WOULD THE TREATMENT OF UNABSORBED CAPITAL ALLOWANCE AND BUSINESS LOSS?
A partnership is allowed to carry forward its unabsorbed capital allowances to be utilized against the future income of the LLP,
A partnership is allowed to carry forward its unabsorbed business losses to be utilized against the future income of the LLP,
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B.H. Loh &
Associates
WHEN IS TAX ESTIMATION?
The LLP is required to submit the tax return, within 3 months from the commencement of business.
DateThe commencement date 1/1/2013The tax estimation submission 31/3/2013
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B.H. Loh &
Associates
WHEN IS TAX ESTIMATION?
The subsequent year, the estimation of tax return is required to submit 30 days before the commencement of the new basis year.
Date
Tax estimation submission date (YA 2014)
30/11/2013
Following assessment year (YA 2014)
1/1/2014 – 31/12/2014
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B.H. Loh &
Associates
WHEN CAN REVISED TAX ESTIMATION?
A LLP is allowed to revise on 6th and 9th month in YA.
DateAccounting year end 31/12/20136th month revised 30/06/20139th month revised 30/09/2013
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B.H. Loh &
Associates
Thank you